"Our name signifies longevity and a commitment to discipline, perseverance and conviction"

Verrazzano Capital SAS Disclaimer

Please read the following information for your own protection and benefit. It explains the legal and regulatory framework which applies to the “UCITS” section of the website. Once you have read the following information please click on the ‘Agree’ button to acknowledge that you have read and understood the information and to access the funds’ information. If you do not meet the below conditions or do not wish to proceed, please click on ‘Disagree’ and this will return you to the Homepage.

By using this website you confirm that you have read, understood and accepted these conditions. Your access to this website is governed by the version of these conditions then-in-force.

The Funds described under this section of the website are UCITS funds (“Undertakings for Collective Investment in Transferable Securities”). They are based and registered in Luxembourg and may be authorised for marketing or not in various European or non-European countries. As a consequence, the distribution of the information contained on this website in European and non-European jurisdictions may be subject to restrictions or limitations. Persons who access this website should inform themselves of and comply with any such restrictions and limitations. The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

The provision of the information in this website does not constitute an offer of securities to any person in the United States or to any U.S. Person as such term is defined under the Securities Act of 1933, as amended. The information contained in this site about Verrazzano and/or any of its affiliates is not directed to any person in the United States. Funds referred to herein are neither registered under the Securities Act 1933 of the USA, nor are they registered under the Investment Company Act of 1940. Consequently, they cannot be offered for sale or be sold in the USA, its territories, possessions or protectorates under its jurisdiction, nor to nationals, citizens or residents in any of those areas. As a consequence, if you are a U.S. Person according to the above-mentioned definition, you should not click the “Agree” disclaimer at the bottom of this disclaimer.

Nothing in this website should be construed as investment, tax, legal or other advice nor is it to be relied upon in making an investment decision. Those accessing this section of the Verrazzano website should consult their financial advisers regarding the suitability of any of the products referred to on this website. Investing in the Funds entails risks and the value of the Funds and the income from them may go down and an investor may receive back less than the original investment. Any application to subscribe in the Funds may be made solely on the basis of the information contained in the prospectus of the fund, the key Investor information document as well as available annual/semi-annual reporting documents. Past performance is not an indicator of future performance.

No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the content of the website by either Verrazzano or the Funds and no liability is accepted by such persons for the accuracy or completeness of any such information. Verrazzano is entitled to amend this content at any time without prior notice. You are entirely responsible for your use of the website, and for the consequences of relying on any content.

To the maximum extent permitted by law, Verrazzano disclaims all liability to you arising out of your use of the website. In particular, Verrazzano shall not be liable for any direct or indirect loss or damage to you, any loss of profits, loss of business, revenue, data, goodwill or anticipated servicings, or any consequential loss or damage.

All content on this website is Verrazzano property. Unless consent is given by Verrazzano, no content, materials or images accessible on or via this website may be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way.

If you are unable to agree to the terms outlined above or you are resident in a jurisdiction where access to the site and information contained therein is not permissible then please click on the ‘Disagree’ option below.

Navigation des articles

« FOLLOWING GUILLAUME RAMBOURG’S DECISION TO RETIRE AND STOP MANAGING MONEY, THE VERRAZZANO EUROPEAN LONG SHORT FUND IS BEING LIQUIDATED AND CAPITAL RETURNED TO INVESTORS »

Fund Aim

A Long/Short diversified portfolio of European equities employing a part fundamental/part tactical approach.

The Verrazzano European Long/Short fund employs a fundamental, research-driven stock picking approach to investing combined with a tactical trading component. One half of the portfolio provides exposure to our best medium term long and short ideas (40-60% core ideas), and the other half seeks to take advantage of short term market anomalies (40-60% tactical ideas).

The portfolios are subject to diversification in terms of geography and sector, providing a balanced approach to investing in European equities, delivering +4.12% annualised net returns since inception with an annualised volatility of 4.47%.*

*Source Verrazzano Capital: +4.12% annualised net returns since inception with an annualised volatility of 4.47%.*as of 31/09/2017. Past performance is not predictive of future performance. Such investment strategies entail risks which are described in the prospectus and Key Investor Information documents of the funds.

Fund Overview

The Verrazzano European Long Short (“VELS”) fund is a UCITS compliant Long Short fund based on the Opportunities strategy, an Irish Qualifying Investor Fund that launched two years earlier. The strategy aims to deliver a pattern of returns with lower volatility than and low correlation to the market.

VELS is a European equity long short UCITS. The strategy adopts a fundamental approach to stock picking with active portfolio management. The portfolio is a combination of core long-term fundamental holdings and shorter term tactical investments. The strategy typically employs 40-80 stocks including longs and shorts with a gross exposure of 50% to 150% and a net exposure ranging between -10% to +40%. The strategy recognizes the value of compounding returns without jeopardizing a long term track record.

Management Comment

The Funds proved resilient in November, but the month itself was rather frustrating, as European equity markets retreated, at a time when the US and Asian markets were on a roll, pushed on by their tech behemoths, with banks taking the baton towards the end of the month. No piece of news can seemingly derail the march upwards and onwards of the US market, which has just registered its 13th consecutive up month, something not many people have witnessed in their lifetimes.

It is all the more frustrating as the macro backdrop for the Continental European economies continues to go from strength to strength, with the German IFO hitting 50-year highs, and with the traditional laggards of Italy and France witnessing loan growth, booming consumer confidence, rising GDP growth expectations, and all of that without inflation rearing its ugly head (yet). True, there is never a dull moment on our old Continent, with Cataluna, Germany and Northern Ireland grabbing the headlines recently. But solutions could be found in the near term, and in the meantime, domestic companies are thriving in this new environment of top line growth, pricing power, increased confidence and visibility, with record low interest rates.

So, what is holding Europe back? Firstly, the stronger Euro this year, as the seemingly doomed currency last year, has gone up from 1.06 to 1.18 in 2017, while most other regions are succeeding in continuing to debase their currencies. Secondly, the lack of proper M&A action, even after such a prolonged period of limited activity. Last but not least, the second wave of investment into European equities has not yet properly materialized, apart from a spurt in September. Money flows have preferred to continue to play it safe in Europe, by favoring the big multinationals, exposed to global GDP growth rather than domestic GDP growth, at a time when the FX exposure will go against them. Pharmas have been very poor, but staples, defensives and global cyclicals continue to be the darlings of foreign investors.

All other things being equal, we remain constructive on European equities, with the belief that domestic value plays should eventually attract the incremental money flows from here on in. Having said that, recent sector rotation has offered very compelling entry points in the likes of AB Inbev and Reckitt Benckiser. We also believe that Telcos, one of the big value traps of this year, should finally attract investors, as was the case late in 2016, when they finally had a bout of strong performance. Last but not least, we expect some of our big bets to finally perform for us, having traded sideways most of this year (Imperial Brands, ThyssenKrupp, Shire).

While we slightly reduced our exposures in the early days of December, we are maintaining a reasonably high level of gross and net exposures of 131% and 30%.

Guillaume Rambourg, December 08, 2017

NAV Chart

Shareclass Information

Class

Class Type

Inception date

ISIN

Bloomberg

Management Fee

Performance Fee

Passported

EI EUR

Accumulation

26/03/14

LU1019497616

VELSEIE

1.25%

20%

UK, DE, IT, SP, SE, LU, SW, SG

EI USD H

Accumulation

10/06/14

LU1019497889

VELSEUH

1.25%

20%

UK, DE, SP, SE, LU, SW, SG

EI GBP H

Accumulation

26/03/14

LU1019497707

VELSEGH

1.25%

20%

UK, LU, SW, SG

I EUR

Accumulation

02/07/15

LU1019497376

VELSIEU

1.50%

20%

UK, DE, IT, SP, SE, LU, SW, SG

I USD H

Accumulation

09/02/16

LU1019497533

VELSIUH

1.50%

20%

DE, SP, SE, LU, SW, SG

I GBP H

Accumulation

26/03/14

LU1019497459

VELSIGH

1.50%

20%

UK, LU, SW, SG

I GBP H

Distribution

28/01/16

LU1045160923

VELSIGD

1.50%

20%

UK, LU, SW, SG

R EUR

Accumulation

28/01/15

LU1019496998

VELSREU

2%

20%

DE, FR, FI, IT, SP, SE, AT, LU, SW, SG

R USD H

Accumulation

04/02/15

LU1019497293

VELSRUH

2%

20%

DE, FR, FI, IT, SP, SE, AT, LU, SW, SG

R GBP H

Accumulation

04/02/15

LU1019497020

VELSRGH

2%

20%

LU, SW, SG

C EUR

Accumulation

04/02/15

LU1045160683

VELSCEC

1.50%

20%

UK, DE, FR, FI, IT, SP, SE, NL, AT, LU, SW, SG

C USD H

Accumulation

04/02/15

LU1045159917

VELSCUH

1.50%

20%

UK, DE, FR, FI, IT, SP, SE, NL, AT, LU, SW, SG

C GBP H

Accumulation

23/09/15

LU1045160766

VELSCGH

1,5%

20%

UK, LU, SW, SG

C GBP H

Distribution

16/10/15

LU1045159834

VELSCGD

1,5%

20%

UK, LU, SW, SG

C CHF H

Accumulation

11/04/16

LU1377977985

VELSCCH

1.5%

20%

LU, SW, SG

This table was established by Verrazzano Capital which is the UCITS management company for the Verrazzano SICAV. Although best efforts were made in gathering data and designing the table, Verrazzano Capital and the Verrazzano SICAV do not make any representation as to the accuracy and completeness of its content. This table may be subject to frequent updates and therefore may not be fully updated at this moment in time. It is your responsibility to ensure that the version you are using is the most up-to-date. There are numerous risks associated with equity investing, including but not limited to liquidity risk, currency risk and market risk. All risks should be carefully understood and considered before making any investment. All relevant details are available in the related prospectus and Kiids which are available on this website. The information on this website should not be construed as an investment advice. Past performance is not indicative of future results. .